Montrose Environmental Group Expected Flat Q4 Revenue After 25.9% Q3 Surge
Montrose Environmental Group posted Q3 revenue of $224.9 million, up 25.9% year-on-year, beating analysts’ EBITDA and adjusted operating income estimates. For Q4, analysts forecast flat revenue growth compared with a prior 14.1% increase, while Waste Connections and Casella Waste Systems reported 5% and 9.7% revenue rises.
1. Last Quarter Outperformance
Last quarter Montrose generated $224.9 million in revenue, a 25.9% increase year-on-year, surpassing consensus EBITDA and adjusted operating income estimates. Strong execution in its environmental services segments drove the outperformance, marking one of the company’s most robust quarterly results.
2. Q4 Revenue Outlook
Analysts anticipate Montrose will report flat Q4 revenue growth, a slowdown from the 14.1% year-on-year increase recorded in the same quarter last fiscal year. Consensus estimates have remained largely unchanged over the past month as the company prepares its earnings release.
3. Peer Performance
Within the waste management sector, Waste Connections achieved 5% revenue growth and Casella Waste Systems rose 9.7% year-on-year, both meeting expectations but experiencing share declines post-results. These peer outcomes provide a benchmark for Montrose’s upcoming report and investor sentiment in the segment.
4. Analyst Price Targets
The average analyst price target for Montrose stands at $33.33, implying over 49% upside from the current trading level of $22.29. Despite a 4.3% stock decline in the past month, sustained analyst confidence underscores potential value ahead of the earnings announcement.